Certis in tie-up with Lendlease to redevelop headquarters

Singapore

ADVANCED integrated security services organisation Certis is teaming up with Australia-headquartered property giant Lendlease to redevelop its ageing headquarters in the Paya Lebar area.

Market watchers say it makes sense for Certis to partner Lendlease, which has expertise in property development, construction and management.

Moreover, Lendlease is familiar with the locale, having developed Paya Lebar Quarter (PLQ), an integrated mixed-use project that has rejuvenated the area.

The Business Times understands that RBC Investor Services Trust Singapore - in its capacity as trustee of Certis & Lendlease Property Trust - has entered into a S$150 million sale and purchase agreement for the acquisition of Certis Cisco Centre at 20 Jalan Afifi.

The property is owned by Certis Cisco Security Pte Ltd.

Market watchers expect Lendlease to also provide management services for the proposed redevelopment project.

Both Lendlease and Certis separately told BT that an agreement on 20 Jalan Afifi had been signed and that the transaction had yet to be completed.

Lendlease's managing director for Singapore and chief investment officer for Asia, Ng Hsueh Ling, said: "We are looking to redevelop the site, which is within close proximity of PLQ, into a green and sustainable development, optimising building technologies and digitalisation."

Certis' spokesperson added that further details will be announced when they are finalised.

Certis Cisco Centre comprises two towers on a 130,210 square-foot site, which is on 30-year leasehold tenure starting May 2013, with an option to renew for a further 30-year term.

The older block, which has eight storeys, was completed in the 1980s; the other block, with seven storeys, was completed in the 1990s.

Under the Urban Redevelopment Authority's Master Plan 2019, the site is zoned for commercial use with a 3.0 gross plot ratio (ratio of maximum gross floor area to land area).

Savills Singapore's deputy managing director of capital markets Galven Tan said: "The redevelopment of the Certis Cisco property at Jalan Afifi bodes well for the growth and rejuvenation of the Paya Lebar precinct.

"The property was developed when the area was still predominantly an industrial estate, but with new developments like Paya Lebar Square and PLQ being completed in recent years, the area has been rejuvenated into a commercial hub.

"This is further enhanced with the locale's proximity to the Central Business District, both by road and MRT system."

PLQ is a mixed-use project comprising residences, offices and retail space integrated with the Paya Lebar MRT interchange between the East- West and Circle lines. The project was developed by a 30:70 joint venture between Lendlease and Abu Dhabi Investment Authority. Lendlease was also the development manager for PLQ, which was completed in phases in 2019 and 2020.

Certis was founded in 1958 as the guard and escort unit of the police force. In 1972, it was turned into a statutory board known as the Commercial & Industrial Security Corporation, or Cisco in short. The organisation was then corporatised in 2005 as a wholly-owned subsidiary of Temasek Holdings and known as Cisco Security Pte Ltd. In 2007, the company was renamed Certis Cisco Security.